hard · Volume Price Analysis
A trader monitors the S&P 500 on a 610-tick chart. They see a sequence where candles form every 5-10 seconds for 2 minutes, then slow down to one candle every 2 minutes.
What does the visual speed of the tick chart reveal?
- The market has transitioned from a high-activity state (institutional participation) to a low-activity state (retail drifting).
- Market makers have expanded the 'Spread' (Pask - Pbid) to reduce transaction volume.
- A 'Short Squeeze' has ended and the insiders are now 'accumulating' on low volume.
- The 'Volume at Price' Point of Control has been reached, causing price to stall.
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